Interest on Delay Payment of TDS

Anwar (PRACTISING CHARTERED ACCOUNTANT) (85 Points)

07 March 2011

Dear Friends

I would like to know whether the interest paid @ 1% for delay pymt of TDS can be claimed as revenue expenditure or not

IF possible please quote the case law..

thanks in advance..

Reply
Follow
Share

4 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 07 March 2011

No… its not possible to claimed as revenue expenditure..

sachin sharma (article) (122 Points)
Replied 07 March 2011

Hi anwar,

as per it act deductions of interest on tax deducted at source cant claim as deduction..

Thats means u cant claim it as a revenue expenditure

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 07 March 2011

any interest / penalty/ late fees paid on income tax or any statuary govt liability is not allowed in expenditure.

CA.Madhu (Charted Accountant) (204 Points)
Replied 07 March 2011

Dear Anwar,

Interest on delay payment of interest is allowed as deduction, only the penalty will not be allowed as deduction.

Start a New Discussion